This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

LCA-Vision CEO Discusses Q3 2010 Results - Earnings Call Transcript

Now, I’d like to turn the call over to Mike Celebrezze. Mike?

Michael Celebrezze

Thanks Jody. Good morning everyone and thank you for joining us. Demand for laser vision correction surgery has historically been soft during the third quarter due to summer holidays and vacations. This year our Q3 procedure volume also was adversely affected by a decline in consumer confidence which reached its lowest level since the second quarter of 2009.

Although the economic environment continues to be highly challenging, we are benefiting from sustained improvements in our ability to divert pre-operative scheduled appointments to completed procedures. Dave Thomas will provide more details on these improvements in a few minutes. We continued to take numerous actions under our company wide priorities of cash conservation, patient acquisition and retention and organizational effectiveness.

This includes evaluating all aspects of our operations with the objective of managing our business effectively while providing a highest level of patient care and customer service. At the Vision Center level, this translates into balancing operating costs and revenue generation. To ongoing evaluation, we reached the decision to consolidate operations in Atlanta, Chicago, Dallas Fort Worth and Houston by closing one of multiple centers in each of those markets.

We are closing Vision Centers in San Diego, Fort Lauderdale, Long Island and Rally. Seven of these Vision Center closures are expected to be completed by mid December and we expect to take a related charge in the fourth quarter of $4.3 million. The charge is comprised primarily of recording 100% of the future rent obligations from the closing centers and severance costs.

It is possible that the charge will be reduced if we’re successful in negotiating lease buyouts or sub-leases. The eighth center will close when the lease expires in April 2011. With these closings, we expect to have sufficient cash and investments to fund our business beyond 2012 if we perform at least 52,000 procedures annually.

Now I’d like to review our 2010 third quarter financial results. As in the past, we are providing both GAAP and adjusted revenues and operating loss as a means of measuring our performance. The adjusted results account for the non-cash impact of the accounting for separately priced extended warranties. A reconciliation of revenues and operating loss as reported in accordance with GAAP is provided at the end of the news release we issued this morning.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs